A Chinese cyber security firm is covertly working with Beijing’s Ministry of State Security intelligence service in conducting cyber espionage operations, according to Pentagon intelligence officials.

The company known as Boyusec, officially the Bo Yu Guangzhou Information Technology Co., is also working with China’s global telecommunications company Huawei Technologies, which has been identified by U.S. intelligence agencies as linked to the Chinese military.

According to an internal report by the Pentagon’s Joint Staff J-2 intelligence directorate, Boyusec and Huawei are working together to produce security products that will be loaded into Chinese-manufactured computer and telephone equipment. The doctored products will allow Chinese intelligence to capture data and control computer and telecommunications equipment, said Pentagon officials familiar with the report.

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